Triuva Wants to Spend €100M in Spain Following Its Integration into Patrizia

3 April 2018 – Eje Prime

The German fund Triuva is looking for opportunities in Spain. The company, which has just completed its integration into another German real estate company, Patrizia, is going to allocate around €100 million to the acquisition of new assets in the Spanish market. The group is currently finalising the renovation of a building on Calle Serrano, 90 in Madrid, and has already leased the 6,300 m2 of retail and office space to Maisons du Monde and Natixis, respectively.

The fund is still hungry for new assets in Spain, and so it is considering the acquisition of office buildings, commercial assets and even hotels. Currently, the Spanish arm of Triuva is fully integrated into the Spanish business of Patrizia, which has its offices on the Madrilenian street Calle Génova.

Patrizia purchased the entire Triuva business in November last year, whereby creating a real estate giant of more than €30 billion. Triuva manages some forty funds around the world and has teamed up with more than eighty institutional investors in recent years.

Triuva has around 270 assets under management, worth €9.7 billion. In Spain, the fund owns three properties in prime locations. The first, acquired during the first quarter of 2015 for €70 million, is located on Calle Preciados, 4, and is leased to the fashion chain Sfera, itself owned by the Madrid-based department store group El Corte Inglés.

Last year, the fund acquired the Adidas flagship store located on Gran Vía, 21, also in Madrid, which had been owned until then by Iberfin Capital, which is in turn, owned by Medcap Real Estate. The consideration paid for that operation was not disclosed (…).

Serrano 90, its latest project 

The Serrano 90 building, also owned by Triuva, is located in the heart of Madrid’s golden mile. 70% of its total available space is allocated to offices and the remaining 30% to commercial use; the property also has a parking lot on its lower floors. According to sources in the sector, the fund has spent around €10 million on the renovation of the asset.

At the beginning of this year, Triuva closed the rental of 6,300 m2 of retail and office space. The retail premises have been leased to the French firm Maisons du Monde, which is going to open its first flagship high street store in Madrid, to accompany the store it already has in central Barcelona.

The household furniture and accessories firm is going to lease 1,860 m2 of space in the building spread over three floors (…). Similarly, the property is going to house the headquarters of Natixis, a French corporate and investment bank, whose offices are currently located in Recoletos. Triuva and the banking institution have signed a rental agreement for 2,940 m2 of office space, as well as the terrace and 34 parking spaces in the Serrano 90 building.

Original story: Eje Prime

Translation: Carmel Drake

AEW Buys Building in Madrid’s Río 55 Complex

24 March 2018 – ProOrbyt Expansion

Insur, a subsidiary of the French corporate investment company Natixis, acquired one of the properties under construction in the Rio 55 complex, in Madrid.

The fund manager AEW, which manages Natixis’ real estate investments, has concluded a new acquisition in Spain. Through its AEW Europe Value Investors Fund, the investment manager purchased one of the two buildings that make up the Rio 55 complex, the office project that Inmobiliaria del Sur (Insur) is developing in Virgen del Puerto, alongside the Madrid Río area, in Spain’s capital.

The property, called Edificio Sur, is part of an approximately 28,000-square-meter complex that is under construction by Inmobiliaria del Sur. In September 2016, Insur, through a partnership with other minority shareholders, agreed to purchase the site in the southeast of the city from Sareb. After a year of negotiations, the 14,000-square-meter property was sold for 20 million euros. In total, the investment in the project will amount to €59 million.

The sale of the Edifício Sur, which has about 13,000 square meters of offices and another 1,000 of retail space, and more than 200 parking spaces, will bring in €43 million to Insur’s coffers. AEW acquired the property through its AEW Europe Value Investors (EVI) fund, which specialises in assets where the current profile or positioning can be enhanced through active asset management strategies. The fund raised €410 million, of which 93% has already been invested throughout Europe, and now the firm is working on the launch of EVI 2. “This acquisition of Rio 55 is completely in line with the strategy of the AEW Europe Value Investors fund. This high-quality development is in a strong location where the outlook for rental growth continues to strengthen,” Carsten Czarnetzki, Country Head for Spain, stated.

AEW first arrived in Spain in 2002. Three years ago, it returned to the market to pursue “strategic purchases” and, in 2017, opened an office in Madrid in one of the buildings it had already acquired: Serrano 240. It also has another office building, on Francisco Silvela, which was the firm’s last purchase in Spain before the current acquisition: ” We continue to explore opportunities to grow our investment in Spain, which is experiencing strong economic growth prospects.”

On the other hand, Inmobiliaria del Sur plans to introduce a motion at its shareholders’ meeting, scheduled for April 27, to vote on the creation of a new company, wholly owned by Insur. The company would transfer part of its portfolio of buildings for rent to a new company called Insur Patrimonial.

The company has a portfolio valued at €424 million, as of December 2017, of which €297.2 million correspond to its real estate business. Within this portfolio, the company owns 118,240 square meters of offices and commercial premises, and more than 2,500 parking spaces. Seville is the location of 84% of the company’s portfolio, while Madrid accounts for 2%.

Original Story: ProOrbyt Expansion – Rocío Ruiz

Translation: Richard Turner

Record Financing Deal: Testa Raises €0.8bn From 16 Banks

15 December 2017 – El Confidencial

Testa has managed to close new financing amounting to €0.8 billion and, in a move that has made the deal remarkable, has not had to use any of its buildings as collateral.

As El Confidencial revealed, the entity in which Santander, BBVA, Merlin and Acciona hold stakes, was negotiating to refinance all of its debt so as to be well positioned to make its debut on the stock market and to have a sizeable sum to make new purchases.

In the end, according to financial sources, the Socimi has obtained the backing of 16 financial entities for the largest unsecured loan ever granted to a company in this sector in Spain. The new loan will be structured in three tranches, whose maturity dates will range between two and five years.

The first, amounting to €0.35 billion, is a bullet loan, which will be repaid in its entirety upon maturity, in December 2022; the second, for the same amount, is a 2-year bridge loan, which the company plans to refinance with a bond; and the third, a line of credit amounting to €0.1 billion has a mortgage guarantee over five years.

The entities that have participated in this financing are Banco Sabadell, Santander, Barclays, BNP Paribas, Caixabank, Citigroup, Credit Agricole, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, ING, JP Morgan, Mediobanca, Natixis and Société Générale.

Following this agreement, Testa’s leverage ratio has increased from 15% to just under 35% and all of its debt is now corporate.

The Socimi is working with a view to making its debut on the main stock market in the spring. It will make that move with a portfolio comprising 9,219 homes dedicated exclusively to rent, spread over 111 buildings and worth almost €2.2 billion.

Nevertheless, thanks to the signing of this new financing, the Socimi now has fresh money to take on new acquisitions before its stock market debut, in line with the purchase that it announced in September of 135 homes from BuildingCenter, the real estate subsidiary of CaixaBank.

65% of Testa’s portfolio is located in Madrid, San Sebastían accounts for 7%, Barcelona 5%, Valencia 4%, Mallorca 3% and other locations the remaining 15%.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

Sabadell Places €1,000M In 10-Year Mortgage Bonds

20 April 2017 – Expansión

It has taken Sabadell just four months to debut on the debt market this year. Yesterday, it completed the placement of €1,000 million in mortgage bonds with a maturity of 10 years, to leave Popular as the only entity that, given the uncertainty surrounding its specific situation, has not resorted to the capital markets to raise finance or secure resources for its capital buffer.

For these bonds, Sabadell is offering a coupon of 1%, in other words, 33 basis points above the mid-swap rate, the reference rate for issuances of fixed income securities in euros. The mortgage bonds are the safest debt that an entity can issue, given that, in Spain, they are guaranteed by all of the mortgage loans of the issuing bank, which serve as collateral in the event of bankruptcy. There has never been a default of this kind in Spain.

To carry out the operation, Sabadell has received help from Barclays, Commerzbank, Crédit Agricole, Lloyds and Natixis, as well as from its own investment banking team. Demand for the bond issue amounted to €2,400 million, in other words, more than twice the amount awarded.

Santander Totta

Meanwhile, Santander Totta, the Portuguese subsidiary of Santander, launched an order yesterday to place 7- and 10-year mortgage bonds. According to sources in the market, the operation will close tomorrow and will serve to raise cheap financing. Besides Santander, the following entities are participating in that operation: Unicredit, Deutsche Bank and Société Générale.

Original story: Expansión (by A. Stumpf)

Translation: Carmel Drake

Santander & Bankia Join CaixaBank In €700M Loan To Realia

6 February 2017 – Expansión

The process to negotiate the refinancing of Realia is still underway. In the latest development, Santander and Bankia have announced that they will join CaixaBank in a new syndicated loan, amounting to around €700 million, which will allow the Spanish real estate company, which is controlled by the Mexican businessman Carlos Slim, to pay off its existing debt.

In this way, in addition to Caixabank, which will lead the new loan for the subsidiary Realia Patrimonio, Santander and Bankia have approved this operation. They are now looking for three more banks to join the agreement, since the idea is that six financial institutions will comprise the new syndicate, according to sources familiar with the process.

To this end, the coordinator has made contact with around thirty banks, including most major banks in Spain, as well as some foreign entities that have headquarters in Spain, such as ING, Crédit Agricole, Société Générale, Deutsche Bank, Aareal Bank and Natixis. Financial sources indicate that the players most interested in joining the process are Abanca, Sabadell, Bankinter and Popular.

The sales document containing the results of the due diligence was published on Thursday and it is hoped that the loan contract will be signed in April, which is when the real estate company’s existing debt, amounting to €680 million, is due to expire. CaixaBank engaged Deloitte in December, on behalf of the other financial institutions, to perform a feasibility analysis of the group’s properties, as well as a comprehensive due diligence; meanwhile, the law firm Uría will be responsible for drafting the new syndicated loan financing contract.

The negotiations to agree the terms of a new syndicated loan form part of the firm’s objective to fulfil its financial viability plan and reduce its level of indebtedness.

In April 2007, Realia Patrimonio carried out a restructuring of its financial debt by subscribing to a syndicated loan with two entities – Caja Madrid and Banesto. They subsequently assigned some of their exposure to 14 others entities, whereby taking the total number of FIs in the lender group to 16, for an initial maximum amount of €1,087 million, and Realia has been paying off the balance ever since. Moreover, these entities have since transferred some of the debt to other companies.

Within the framework of this strategy, at the end of 2015, Realia signed a refinancing agreement with the debt-holding entities of its residential activity – another one of the company’s business lines – whose capital pending repayment amounted to more than €800 million.

Following the restructuring of the residential business debt and after incorporating the debt outstanding on the participation loan that Inversora Carso purchased from Sareb, Realia’s gross financial debt position stood at €941 million at the end of Q3 2016, down by 46% compared to the same period in 2015.

Original story: Expansión (by R.Arroyo)

Translation: Carmel Drake

Socimis Have Raised €1,700M In Funding In YTD16

11 August 2016 – Expansión

Merlin, Hispania, Grupo Lar and Axiare are increasing their capital and attending the bond market in order to finance new acquisitions, increase their asset portfolios and grow in size.

The large listed real estate investment companies (Socimis) – Merlin, Hispania, Lar España and Axiare – are preparing themselves to gain financial muscle and resume their property purchases. Specifically, so far this year, those Socimis have raised almost €1,700 million between capital increases, financing agreements and bond issues and they are expected to continue to pull on the real estate sector this year.

These four companies, which debuted on the Madrilenian stock exchange between March and July 2014 with €2,560 million to invest, have been the stars of the reactivation of the real estate sector and intend to continue to grow this year. Last year, the Socimis accounted for more than 40% of all real estate investment, with an investment volume of around €5,300 million. To that end, Merlin, Axiare, Hispania and Lar España managed to raise almost €3,000 million on the main market through several capital increases.

Bond issue

So far in 2016, the Socimis have again been very active in terms of raising funds for investment. Specifically, Merlin, which is preparing for its merger with Metrovacesa in a deal that will see it become the largest real estate company in Spain, has opted to go to the bond markets. The company chaired by Ismael Clemente completed a bond issue in April amounting to €850 million, with a maturity of seven years and an annual coupon of 2.225%, payable annual in arrears.

Similarly, in June, the Socimi announced that it had signed a revolving loan (a flexible arrangement) for a maximum amount of €320 million over five years, which will be used for the current investment program that it is undertaking, as well as to finance new acquisitions. (…).

Meanwhile, Hispania, which focuses on the hotel sector above all, completed a capital increase in June amounting to €231 million, through the issue and placing into circulation of 25.8 million new shares, at €8.95 per share (the sum of the nominal value and the issue premium). The company in which George Soros owns a stake, which had used up almost all of its investment capacity, has identified new opportunities worth €1,500 million. (…).

Another of the Socimis listed on the stock market that wants to gain financial muscle to make purchases is Lar España. That company has completed a €147 million capital increase this year, through the issue of 30 million shares at a price of €4.92, in order to be able to undertake new transactions.

In addition, in February, the company signed a loan with a banking syndicate comprising Natixis, Credit Agricole and Santander, amounting to €97 million over a seven year term. This financing was associated with the acquisition of Megapark Barakaldo. (…).

Financing agreements

In March, also with the aim of raising funds for investment, Axiare Patrimonio signed a new financing contract with Banco Santander for €14.9 million over two premises in Edificio Velázquez, in Madrid.

In addition, in June, Axiaire reached a financing agreement with Bankinter amounting to €31.2 million, with a five-year term. (…).

Similarly, the company has also signed an agreement with BBVA amounting to €7 million, also with a five-year term. In this case, the financed property is an office building on Calle Josefa Valcárcel (Madrid).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

AEW Purchases An Office Building In Madrid For €26M

23 February 2016 – Expansión

The real estate management company AEW Europe has acquired an office building in Madrid for around €26 million. The property is located at number 240 on Calle Serrano and was owned until now by a private investor.

The building has a surface area of 7,550 m2 and an occupancy rate of 83%, according to the consultancy firm Savills, which has advised the purchaser. The property has seven floors and contains several commercial outlets, as well as an underground car park with 70 parking spaces, a restaurant and gym.

AEW Europe intends to renovate the offices and restaurant area and incorporate new facilities. The group, which is a subsidiary of Natixis, held assets under management amounting to €18,200 million at the end of September 2015. AEW Europe employs 280 people and has nine offices throughout Europe.

Original story: Expansión

Translation: Carmel Drake

BBVA Issues 5.5-Year Bonds Worth €1,250M

11 November 2015 – El Economista

Yesterday, BBVA completed the placement of mortgage bonds amounting to €1,250 million, with a five and a half year term, on which it will pay interest of 0.625%, the lowest coupon in the bank’s history for this kind of debt.

According to market sources, the strong demand from overseas investors allowed the bank to lower the price of the issue to 38 basis points above the midswap rate, the reference rate for this kind of issue.

The underwriting banks for the operation were BBVA itself, plus Commerzbank, Credit Agricole, HSBC and Natixis. The last time that BBVA carried out an operation of this kind was on 12 January 2015, when it also placed €1,250 million in mortgage bonds, although they had a 7-year term.

On that occasion, the entity paid interest of 0.75%, the lowest coupon on that kind of debt at that time, thanks to the fact that the operation attracted investors from all over the world, whose demand exceeded €2,500 million.

Following in the footsteps of CaixaBank

BBVA has launched this bond issue just one week after CaixaBank closed its own operation to issue 5-year mortgage bonds amounting to €1,000 million. Demand in that case almost doubled supply.

The price of that issue, which was closed on 4 November, amounted to 43 basis points above the midswap rate, and the bonds carry a coupon of 0.625%.

Original story: El Economista

Translation: Carmel Drake

Sabadell Launches €1,000M 5-Year Bond Issue

28 October 2015 – Cinco Días

Banco Sabadell has issued 5-year mortgage bonds amounting to €1,000 million, with a coupon of 0.625%, after applying 0.48 percentage points to the midswap index (the interest rate on risk-free money over a certain period). Commerzbank, Goldman Sachs, Lloyds Bank and Société Générale were the underwriters of the issue.

Sabadell initially planned to place €750 million, but requests were received for €1,500 million, and so the company decided to increase the volume. Sources close to the placement also highlight the quality of the orders.

The requests have been made by more than 80 international investors. Sources at the underwriting banks explain that Sabadell has become “the first bank in the south of Europe capable of undertaking an issue amounting to €1,000 million; in recent weeks, the maximum size has been €750 million”.

This bond issue comes a week after Cajamar completed its own debt issue, also placing 5-year mortgage bonds. That issue amounted to €750 million, whereby exceeding its initial objective of €500 million.

Cajamar set the placement price of the issue at 80 basis points above the midswap index (the benchmark rate for long-term issues) to offer a fixed annual coupon of 1% and a yield for investors of 1.22%. The underwriters in that case were Santander, JP Morgan, Natixis, Nomura and Deutsche Bank.

Original story: Cinco Días

Translation: Carmel Drake

Blackstone & Natixis Enter Gecina Challenging the Spanish Justice

31/01/2014 – Cinco Dias

Blackstone, one of the biggest private equity company in the world, acquired 22,9% of Gecina´s capital, the largest French real estate firm. The assets taken over by Blackstone have been in hands of Joaquín Rivero and Bautista Soler, that together owned 31% of Gecina. The U.S. firm bought 14,4 millon assets of Gecina, equal to 22.98% of the capital. Also Ivanhoe, Caisse de depot et placement du Quebec fund is taking part in the transaction.

French bank Natixis has acquired another 4,9% of Gecina, also from the two businessmen. (…) Together, Blackstone and Natixis possess 27.8% of the company, apparently more than Metrovacesa, owning 27%.

The acquisition has been approved by a court in Luxembourg, once rejected by a Spanish legal institution. (…).

Original article: Cinco Días (Alberto Ortín Ramón)

Translation: AURA REE